Kestra Private Wealth Services LLC Acquires 2,965 Shares of Lumentum Holdings Inc. $LITE

Key Points

• Kestra Private Wealth Services increased its Lumentum stake by 231.8%, buying 2,965 shares in the third quarter to reach 4,244 shares, valued at about $4.12 million.
• Lumentum reported quarterly EPS of $4.57, beating estimates of $4.22, while revenue rose 136.5% year over year to $1.26 billion.
• Despite the earnings beat, the shares were reported down 18.7%; analysts’ consensus rating was “Moderate Buy.” Insiders sold 94,496 shares worth nearly $86 million over the prior 90 days.

Kestra Private Wealth Services LLC lifted its holdings in shares of Lumentum Holdings Inc. (NASDAQ:LITE - Free Report) by 231.8% in the third quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor owned 4,244 shares of the technology company's stock after purchasing an additional 2,965 shares during the period. Kestra Private Wealth Services LLC's holdings in Lumentum were worth $4,122,000 as of its most recent SEC filing.

Several other institutional investors have also recently modified their holdings of the stock. Financiere des Professionnels Fonds d investissement inc. acquired a new stake in shares of Lumentum during the first quarter valued at $2,046,000. Styrax Capital LP raised its stake in Lumentum by 3.6% in the 1st quarter. Styrax Capital LP now owns 140,000 shares of the technology company's stock valued at $98,386,000 after purchasing an additional 4,837 shares during the last quarter. Swiss National Bank raised its stake in Lumentum by 47.2% in the 1st quarter. Swiss National Bank now owns 208,015 shares of the technology company's stock valued at $146,185,000 after purchasing an additional 66,700 shares during the last quarter. Franchise GP Ltd lifted its holdings in Lumentum by 201.7% in the 3rd quarter. Franchise GP Ltd now owns 13,880 shares of the technology company's stock valued at $13,481,000 after purchasing an additional 9,280 shares in the last quarter. Finally, Triglav Investments D.O.O. purchased a new position in Lumentum in the 1st quarter valued at about $2,945,000. 94.05% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

Several equities research analysts have issued reports on LITE shares. Citigroup raised their price target on shares of Lumentum from $1,200.00 to $1,400.00 and gave the stock a "buy" rating in a research note on Monday, September 28th. Evercore began coverage on shares of Lumentum in a research report on Monday, August 31st. They issued an "outperform" rating and a $1,100.00 price objective for the company. Bank of America reduced their price objective on shares of Lumentum from $1,100.00 to $1,000.00 and set a "neutral" rating on the stock in a research note on Wednesday, August 12th. Rosenblatt Securities reduced their price objective on shares of Lumentum from $1,300.00 to $900.00 and set a "buy" rating on the stock in a research note on Tuesday. Finally, Zacks Research lowered shares of Lumentum from a "strong-buy" rating to a "hold" rating in a research report on Monday, October 12th. Two investment analysts have rated the stock with a Strong Buy rating, fourteen have given a Buy rating, seven have issued a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus target price of $1,081.61.

Insider Buying and Selling

In other news, insider Yuen Wupen sold 307 shares of the business's stock in a transaction on Tuesday, September 29th. The shares were sold at an average price of $945.00, for a total transaction of $290,115.00. Following the completion of the sale, the insider directly owned 108,320 shares of the company's stock, valued at $102,362,400. The trade was a 0.28% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Wajid Ali sold 24,542 shares of the business's stock in a transaction on Thursday, October 1st. The shares were sold at an average price of $1,048.50, for a total transaction of $25,732,287.00. Following the sale, the chief financial officer directly owned 75,074 shares of the company's stock, valued at $78,715,089. This represents a 24.64% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders sold 94,496 shares of company stock valued at $85,978,498. 0.28% of the stock is owned by insiders.

Lumentum Stock Down 18.7%

Shares of NASDAQ:LITE opened at $509.70 on Friday. The stock's 50-day moving average price is $902.48 and its two-hundred day moving average price is $800.69. The company has a current ratio of 1.61, a quick ratio of 1.40 and a debt-to-equity ratio of 0.01. Lumentum Holdings Inc. has a 12-month low of $215.35 and a 12-month high of $1,143.00. The firm has a market cap of $46.23 billion, a price-to-earnings ratio of -6.47 and a beta of 1.64.

Lumentum (NASDAQ:LITE - Get Free Report) last posted its quarterly earnings results on Monday, November 2nd. The technology company reported $4.57 EPS for the quarter, beating the consensus estimate of $4.22 by $0.35. The company had revenue of $1.26 billion during the quarter, compared to analysts' expectations of $1.26 billion. Lumentum had a positive return on equity of 28.85% and a negative net margin of 175.82%. The firm's revenue was up 136.5% on a year-over-year basis. During the same quarter in the previous year, the business earned $1.10 EPS. On average, research analysts forecast that Lumentum Holdings Inc. will post 19.80 EPS for the current year.

Trending Headlines about Lumentum

Here are the key news stories impacting Lumentum this week:

• Positive Sentiment: The proposed Marvell acquisition could combine complementary technologies and support revenue growth and better gross margins over time. Marvell's Deal to Acquire Lumentum Could Be a Game Changer for the Stock
• Neutral Sentiment: The deal is an all-stock transaction, with Lumentum holders set to receive 4.5 Marvell shares per Lumentum share. That structure means the value of the consideration can fluctuate with Marvell’s stock. Lumentum declines, continues retreat after all-stock Marvell deal
• Negative Sentiment: The immediate pressure appears largely sector-driven: AI optical stocks fell for a second session, with selling persisting even as companies in the group reported strong results. One report said Lumentum’s decline had no clear company-specific catalyst. AI optical stocks slide Lumentum Drops in a Single Session With No Clear Catalyst
• Negative Sentiment: Several firms issued more cautious views: Rosenblatt lowered expectations, TD Cowen published a pessimistic forecast, and B. Riley downgraded its rating. Rosenblatt Securities Lowers Expectations TD Cowen Issues Pessimistic Forecast B. Riley Lowers Lumentum Rating
• Negative Sentiment: A law firm is investigating the proposed Marvell deal’s price and process, adding another source of transaction uncertainty. Investor alert on proposed sale investigation

About Lumentum

Lumentum Holdings Inc is a technology company that designs and manufactures optical and photonic products for communications networks, industrial applications, and consumer electronics. Its portfolio includes optical components, modules, and subsystems used in fiber-optic networks, data centers, cloud computing infrastructure, telecommunications equipment, and high-speed connectivity systems.

The company also develops laser products for applications such as industrial processing, sensing, three-dimensional imaging, and other specialized commercial and consumer uses.

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